Oklahoma Home Closing Wire Fraud: How Buyers and Sellers Can Protect Their Money

How a real estate wire scam can happen

The Consumer Financial Protection Bureau explains that scammers may compromise or imitate an email account, monitor a real estate transaction and then send convincing instructions that redirect funds to an account controlled by the criminal.

Warning signs may include:

• new wiring instructions sent shortly before closing;
• a request to change an account that was previously provided;
• unusual urgency or pressure to act immediately;
• small changes in an email address or domain;
• instructions not to call the usual contact;
• a new phone number included in the same message; or
• a request to email sensitive financial information.

A professional-looking email is not proof that it is genuine. A compromised account may allow the criminal to imitate the tone and timing of a real conversation.

Verify instructions using a trusted number

Before sending a wire, independently call the title or settlement company using a phone number obtained from a trusted source established earlier in the transaction. Do not use a phone number contained only in the email being verified.

Read the receiving bank name, routing number, account number and account name back to the authorized settlement representative. Ask whether the company expects any future change to those instructions and what verification process it uses.

The CFPB advises consumers not to rely on wiring instructions contained in an email and to avoid links or phone numbers in a suspicious message.

Treat last-minute changes as a stop signal

Any last-minute change to payment instructions should pause the transfer until it has been independently verified.

Do not let an approaching closing appointment override basic security. A legitimate closing professional should understand why a buyer or seller is confirming instructions through a previously established channel.

Buyers and sellers can also agree with trusted transaction contacts in advance on:

• who is authorized to provide instructions;
• which phone number will be used for verification;
• whether instructions will ever change by email;
• whether the title company uses a secure portal; and
• what information must be confirmed before funds are sent.

Buyers should verify both the amount and destination

The final Cash to Close should be confirmed from the current closing documents and settlement professional. The bank-account destination should be verified separately through the trusted contact process.

Confirming only the amount is not enough. A scammer may know the approximate amount and closing date. Likewise, recognizing the title company’s name is not enough if the account number has been replaced.

After sending a wire, contact the settlement company through the trusted number to confirm receipt. Do not assume that an emailed “received” message is authentic.

Sellers must protect proceeds too

Sellers can also be targeted through requests to change the account receiving sale proceeds. A criminal may impersonate the seller, or the seller may receive a false request to submit banking information through an unsafe channel.

Sellers should ask the title company how proceeds instructions will be collected, authenticated and changed. Never email account information casually or respond to an unexpected message without verifying the sender.

What to do if money was sent to the wrong account

Speed matters. The CFPB recommends contacting the bank or wire-transfer company immediately and requesting a wire recall. The incident should also be reported promptly to the FBI’s Internet Crime Complaint Center at IC3.gov.

If fraud is suspected:

1. Call the sending bank immediately and ask for its fraud department.
2. Request a recall or other available recovery action.
3. Notify the legitimate title or settlement company.
4. Report the incident through IC3.gov.
5. Preserve emails, headers, text messages, receipts and account information.
6. Follow guidance from law enforcement, the bank and qualified legal counsel.

Do not spend hours replying to the suspected scammer before contacting the financial institution.

A practical closing-funds safety checklist

Before money moves:

1. Save the title company’s verified phone number early.
2. Ask how legitimate wiring instructions will be delivered.
3. Confirm instructions verbally through the trusted number.
4. Never use contact information supplied only in the message being checked.
5. Treat changes in instructions as suspicious until independently verified.
6. Confirm receipt after sending funds.
7. Report a suspected diversion immediately.

No security practice can eliminate every risk, but a deliberate verification process can prevent a convincing email from becoming an irreversible financial loss.